Powermatic Data Systems

[Squirrel]

There has been some recent news on the spat between Qualcomm and ARM. Not sure how this would impact Powermatic, but from what I can glimpse, it seems to rely heavily on Qualcomm products, which is a juggernaut in the wireless connection technology sector.

Of course, the companies themselves seem pretty unaffected (share price wise) by the legal dispute. However for small companies that have a dependency on their products, that might be a different outcome.

Will be interesting to see what the outcome is.

[weijian]

@dreamybear,
I think it probably means that prior covid-19 years' revenue were largely an aberration - boosted by over-ordering in response to the micro-chip long lead times which were up to 10-12months at 1 period. So now, we know that the "pretty spectacular YoY increases in revenue" during covid-19years were not genuine demand, but demand pulled forward. To be fair, I looked back at my notes and observed that Chairman Mun had expressed the type of pessimism that warrant current results more than 1 year ago (in FY23 end/1H24).

@Squirrel,
Powermatic Data specializes in customizing microchip sets used for wifi applications (it is an order based business). These microchip sets have their parts ordered from 3rd parties (eg. chipmakers) and then assembled in-house. Their products are based on Qualcomm design and standards. ARM and Qualcomm are competing with each other in terms of licensing their wide array of design/standards to others. ChatGPT said that their dispute is related to some Qualcomm's acquisition done in 2021 and since Powermatic Data has been using Qualcomm's design/standards for a long time, it is highly probable not related or will there be any future impact.

[weijian]

When Chairman/CEO Chen Mun relinquished his CEO position to Jason Tao a Qualcomm insider who worked there for 15years, I had thought this positioning is a net positive and set the good base for the future. Of course, I have zero knowledge of Jason Tao's competency or track record.

Less than 6 months on, Jason Tao is leaving. That is pretty shocking. And what is even more shocking is that he will even be able to encash RSU!

Announcement on Cessation of Chief Executive Officer

60,252 Restricted Stock (Share) Units will be converted to cash upon cessation or at a date mutually agreed.

https://links.sgx.com/1.0.0/corporate-an...4759a2f114

Jason Tao's appointment back in Jan2025: https://links.sgx.com/1.0.0/corporate-an...6430562917
2009 to 2024 - Qualcomm Inc. Sr. Director of Product Management

[Dosser]

The share price of Powermatic jumped significantly over the last week, although it fell back yesterday. As another company where real estate makes up much of the value of the company although not being the primary revenue generator, presumably this is a knock-on from Centurion and Boustead. I can't see any other news that might explain the sudden jump. Still well down from the highs of last year.

[weijian]

Powermatic Data's share price has had some abnormal price movements recently. So I guess it would be apt to google for whether the pricing at 7/9 Harrison Rd re-development is out. And it looks like some early indicative pricing is out.

https://www.allaboutfnb.sg/freehold-food...-tai-seng/
https://www.commercialguru.com.sg/listin...g-25108918
https://harrisonfood.sg/overview

There will be a total of 42units (exclude the canteen) ranging from 1,709 square feet to 2,490 square feet.

So, if we were to assume the cheapest price tags at 1800psf at 1709sqft over 42units at 3% frictional costs (agency/marketing), translates to (1800*1709*42)*0.97 = 125mil (or 3.50sgd per share)

"Cost" of the redevelopment = FV of property before development + construction costs = 48.3mil + 28mil = 76mil

The redevelopment will probably translates to at least 125-76 = 49mil or 1.37sgd per share of value creation. My questioning in early 2024 just shows my gross ignorance.

Powermatic Data's FY26 results have been published and the interesting portion is Harrison Food Factory. I made some projections some time back and thought it would be interesting to try to reconcile them and see where I got right/wrong.

As end March 2026:
- 16/42units have been sold (37% by unit count and ~36% by GFA)
- 37% of units will have revenue recognition = 15.6 + 31.4 = 47mil.
- 100% of units sold = 47mil/0.37 ~ 127mil of revenue.
- With GPM of 70% (that's a lot!) for the 37% sold, total GP~127mil*0.7 ~ 89mil (2.50sgd/share). Since all costs (including selling) are either capitalized or expensed as COGS, we can reasonably assume that all 89mil of GP should be eventually paid out when fully sold.
- In addition, there are also capitalized costs (land) which are non-cash in nature and will eventually form 12mil (0.30sgd/share) of capital return.

Looking at my notes, my July2024 projection tracked actual revenue coming in relatively well. But back then, I was using a conservative projection by using minimum indicative prices with the sale commissions added in. So it does seem actual sale prices are actually slightly lower than the indicative prices at July2024 launch.

FY26 results: https://links.sgx.com/FileOpen/PDS%20BOD...eID=890292

[BlueKelah]

This one I have sold out already, revenue is slightly dropping after recent years peak, looks like going forward unless they do some AI hype thing. Tech type company should not be about property story lol...